IntelligentCross – A Year of Outperforming Exchanges with AI

By Roman Ginis, Founder & CEO at Imperative Execution

A year ago we set out to create a venue that minimizes market impact and allows market participants to trade as efficiently as the best firms on the street. Today, with over 3 billion shares matched, IntelligentCross performs about 8x better than the exchanges at the midpoint (0.15bps vs 1.2bps), measured by market impact, and as much as 4x better at adverse selection at the touch (0.72bps vs 2.99bps – see chart below). This is no accident – IntelligentCross is designed to ‘solve for’ these objectives with an AI-based optimization of the matching process. We believe this approach to venue design – starting with an objective and optimizing the matching logic to achieve it — is the best way to create an efficient market.

Thanks to the SEC’s adoption of Reg ATS, innovation in matching has been happening for two decades. And now, for the first time in history, investors have a venue that uses AI to help materially improve their execution quality. Every basis point of execution efficiency–assuming the turnover in US equities of $400B/day–saves investors $10 billion/year. These savings compound and will enable investors to grow their wealth faster. The lower cost of trading will also grow the broader market, as capital that was too expensive to deploy, will more easily flow into public companies.

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